Aye Finance expects 55% growth in AUM this year, eyes IPO in FY26

“We will look at it (IPO) not in the next financial year, but the year after that. So we’re talking about FY26, where we will definitely look at plans where we could come out with an IPO,” he said.

The Gurgaon-based firm has seen a rapid expansion in its portfolio from ₹2,700 crore at the beginning of the year to approximately ₹3,900 crore, projecting to close FY24 with a 55% growth in AUM at ₹4,200 crore.

Sharma said that heeding the Reserve Bank of India’s warnings about the economy overheating, Aye Finance has focussed on cautious, selective funding and maintained a healthy 50% annualized growth rate. 

The company clocked a net profit of ₹125 crore during the April-December period, and expects a full-year profit of close to ₹160 crore. Revenue for the same period stood at ₹751 crore.

In FY23, revenue from operations rose 44.5% on year to ₹623 crore, with net profit at ₹54 crore.

“We have been consistently delivering almost 19-20% return on equity (RoE) through the year and I think at the end of the year, we’ll also demonstrate a delivery of around 19-20% RoE,” said Sharma.

Serving over 800,000 micro enterprises since its inception, the company has disbursed 275,000 new loans this year, maintaining an active customer base of around 400,000. 

With total funding of $135 million, the latest being $37.18 million led by British International Investment, Aye Finance continues to support small and micro enterprises across India. 

Sharma noted a 10-15% year-on-year increase in the average loan size, both mortgage-based loans and unsecured, for FY24, indicating a growing demand for larger loans for business expansion.

“Our typical loan size is about ₹100,000 to ₹200,000, which typically suffices as a working capital loan. Sometimes customers do look at ₹300,000-500,000 sort of loans or higher for setting up some new business or expanding their business,” he said adding that, this year loans which are in the ₹300,000-500,000 range have been higher than in FY23.

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Published: 14 Feb 2024, 06:08 PM IST